Investor Suite
Traditional Investment Property Financing: Are conventional mortgages designed for investors purchasing residential properties to generate rental income. These loans follow the underwriting standards set by Fannie Mae and Freddie Mac, offering competitive rates and terms for qualified borrowers. These loans are ideal for investors seeking predictable payments and the stability of a conventional mortgage structure. They are also commonly used for "house hacking," where an investor lives in one unit of a multi-unit property and rents out the others.
Key features include:
- Loan-to-value (LTV) ratios typically up to 75-85% for investment properties
- Standard documentation and qualification requirements, including income, credit, and asset verification
- Limits on the number of financed properties per borrower (usually up to 10)
- Best suited for borrowers with strong credit profiles and verifiable income.
- 1-4 Units
DSCR (Debt Service Coverage Ratio) Loans- Are designed for real estate investors who want to qualify based on the income generated by the property rather than their personal income. Lenders use the property’s debt service coverage ratio-the ratio of rental income to the property’s debt obligations-to determine eligibility. DSCR loans are particularly attractive for investors looking to expand their portfolios quickly or those who may not meet the strict income documentation requirements of traditional loans.
Key features include:
- Qualification based primarily on property cash flow, not personal income
- Fewer documentation requirements, making the process faster and easier
- Flexible loan limits and terms, often with LTV ratios up to 85%
- Suitable for both new and experienced investors
- Ability to finance multiple properties simultaneously, with fewer restrictions on the number of loan
- Asset Reserves typically to cover owned real estate PITI (Principal, Interest, Taxes and Insurance) of 3-6 months